Herc (NYSE:HRI) Posts Earnings Results, Beats Estimates By $0.67 EPS

Key Points

• Herc reported quarterly EPS of $1.43, beating analyst estimates of $0.76 by $0.67. Revenue reached $1.20 billion, also ahead of expectations of $1.16 billion.
• The company declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a 1.8% yield.
• Analyst sentiment remains mixed, with five Buy, three Hold and one Sell rating; the average price target is $173.43, while institutional investors own 93.11% of Herc’s shares.

Herc (NYSE:HRI - Get Free Report) posted its quarterly earnings results on Tuesday. The transportation company reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.67, FiscalAI reports. The business had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.16 billion. Herc had a negative net margin of 0.11% and a positive return on equity of 10.72%.

Herc Price Performance

HRI stock opened at $159.85 on Tuesday. The stock has a market capitalization of $5.34 billion, a price-to-earnings ratio of -592.02, a price-to-earnings-growth ratio of 29.52 and a beta of 1.88. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 4.24. Herc has a 52-week low of $88.45 and a 52-week high of $188.35. The stock's fifty day simple moving average is $143.34 and its 200-day simple moving average is $137.10.

Herc Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Herc's dividend payout ratio is currently -1,037.04%.

Wall Street Analyst Weigh In

Several research firms recently commented on HRI. Citigroup boosted their price objective on shares of Herc from $155.00 to $175.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. BNP Paribas Exane assumed coverage on shares of Herc in a research report on Monday, June 29th. They set a "neutral" rating and a $160.00 target price for the company. JPMorgan Chase & Co. increased their price target on shares of Herc from $140.00 to $165.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. Weiss Ratings raised shares of Herc from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, July 10th. Finally, Wells Fargo & Company upped their target price on Herc from $160.00 to $176.00 and gave the company an "overweight" rating in a research note on Wednesday, April 29th. Five equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Herc has an average rating of "Hold" and an average target price of $173.43.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Advisory Services Network LLC acquired a new stake in shares of Herc in the third quarter worth approximately $35,000. Smartleaf Asset Management LLC raised its stake in Herc by 50.2% during the fourth quarter. Smartleaf Asset Management LLC now owns 332 shares of the transportation company's stock worth $51,000 after purchasing an additional 111 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in Herc during the third quarter worth approximately $40,000. NewEdge Advisors LLC boosted its holdings in shares of Herc by 628.8% in the 3rd quarter. NewEdge Advisors LLC now owns 430 shares of the transportation company's stock valued at $50,000 after purchasing an additional 371 shares during the last quarter. Finally, BOKF NA purchased a new stake in Herc during the third quarter valued at about $52,000. Institutional investors and hedge funds own 93.11% of the company's stock.

Herc Company Profile

Herc Holdings Inc NYSE: HRI operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company's fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.

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